The purpose of this study was to examine stakeholders' perceptions of the policy andrnpractice of pupils , advancement in government lower primary schools of South GondarrnAdministrative Zone, focusing on perceptions of stakeholders, practice of pupils'rnadvancement and factors affecting the practice of pupils' promotion.rnIn order to achieve the purpose of the study, descriptive survey research design wasrnemployed. Samples of the study were 208 teachers, 34 directors and school clusterrnsupervisors 5 woreda education office heads, 6 pupils and 6 parents. Of thernrespondents' teachers, head teachers and school cluster supervisors filledrnque"tionnaires, vvhile interview was conducted with woreda education office heads,rnparents and pupils. Moreover relevant documents were also used as source of data.rnThe data collected Fom participants and documents were analyzed using bothrnquantitative and qualitative methods.rnThe result of the study showed that there was a diflerence among stakeholders inrnperceptions o.lpupils promotion policy, teachers believed that grade repetition willrnbenefit lower achievers and pupils promotion to be based on tests and examinationrnresults, whereas directors and supervisors believed that pupils promotion to be basedrnon continuous assessment results. The practice of pupils' promotion revealed that nornemphasis was given for pupils' academic competence; continuous assessment wasrnmainly used for the purpose of decision making of pupils' promotion. The practice ofrnpup.1s' ;,yomotion was affected by factors like large class size, lack of training ofrnteachers and' lack of active involvement of stakeholders.rnThus, based on the above results, it can be concluded that, since stakeholders haverndWerent perceptions of the policy and schools experience poor continuous assessmentrnand grade promotion practice which is conFonted by d~flerent hindering factorsrn,pupils promotion policy in lower primwy schools is not practiced as it is intended.rnFinally, the study recommended that it is necessary to provide the opportunity forrnteachers to understand the true essence of the promotion policy and the role ofrncontinuous assessment in lower primary schools through organizing seminars,rncon/ere]1ces and workshops; there should be active involvement of parents and otherrnstakehoiJers, the right and timely pro./essional support is also necessary for schools.